Seth Godin has a post on Goodbye to the office. For a software company the real work no longer requires an office.
An office is required for legal/taxation purposes. A company is an entity independent of its members and requires a "brick-and-mortar" address.
The office now fulfills a social role; provides a sense of belonging to a group; provides some sense of identity; as Seth says, it meets "I need some place to go".
I have practised it for some years now. And at the tools BU that I headed, we had no problem in permitting people who wanted to work from home, to do so. I am based in Noida. The tools people, except for 4 persons, were all based in Chennai. Owing to our process I had no problem in keeping track of what was happening.
I would however, like to add a caveat. Working remotely is not for everyone. It calls for a great deal of self discipline.
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